A trust has purchased a 60-unit apartment building in Glendale from an individual for $28 million, records show. The property, which is located at 221 N. Cedar St., was built in 1986.
Investment Real Estate Associates’ David Leibowitz represented the buyer and the seller in the transaction.
“The property itself was very desirable,” Leibowitz said. “It had never been previously on the market. The seller’s grandfather built the property in 1986. It is one of the premiere assets in the area due to its combination of size, units mix and age.”
The buyer will likely make some changes, he added.
“The seller had rehabbed approximately one-third of the units. The buyer plans to renovate and update the remaining units as they organically turn over,” Leibowitz said.
The property was 93.3% leased at the time of the sale, according to data from CoStar Group Inc.
Leibowitz added that the building could easily be 100% leased, but the buyer’s desire to renovate likely stopped the seller from finding additional tenants.
The sale of the family asset was all about timing for the seller, according to Leibowitz.
“They were taking advantage of the market and looking to diversify into other, higher-yielding assets in other locations,” Leibowitz said. “Low interest rates allow buyers to be more aggressive and sellers who are looking for higher-yielding assets to lock in lower interest rates. It’s a fantastic time and combination of factors.”
The Glendale market has been in high demand. One of the biggest multifamily sales in 2019 was the 220-unit Griffith in Glendale. The property was built in 2018 and sold for $118.5 million. Greystar Real Estate Partners purchased the property from AFL-CIO Investment Trust Corp. and PNC Realty Investors Inc.
And the 92-unit Summit at La Crescenta sold in November for $34.5 million. Orange County-based Raintree Partners purchased the property.
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